Strike Off the Company

Eligibility for Strike off:
1. Company has failed to commence its business within 1 year of its incorporation or;
2. Company is not carrying on any business  for immediately 2 FY  and has not applied for status of dormant company

Situations in which Company cannot apply for Strike off:
The Company shall not made any application for the strike off of the Company if at any time in the previous 3 months, the company has done any of the below mentioned activities:
i. Has Changed its name or
ii. Has Shifted its registered office from one State to another;
iii. has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business.
iv. has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section.
v. has made an application to the Tribunal for the sanctioning of a Scheme of Compromise or Arrangement and the matter has not been finally concluded; or
vi. is being wound up under Chapter XX of the Companies Act, 2013, whether voluntarily or by the Tribunal.

Type of Companies which cannot be removed under these provisions:
(i) Listed Companies
(ii) Companies registered under section 8
(iii) Companies having charges which are pending for satisfaction
(iv) Companies whose application for Compounding is pending
(v) Companies against which any prosecution for an offence is pending in any court
(vi) Vanishing Companies
(vii) Companies that have been delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws;
(viii) Companies where inspection or investigation is ordered and being carried out or actions or such order are yet to be taken up or were complete but prosecutions arising out of such inspection or investigation are pending in the court.
(ix) Companies which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
(x) Companies where notices under section 234 of CA 1956 or 206 or 207 of the CA 2013 have been issued by the Registrar or Inspector and reply thereto is pending or report under section 208 is pending or where any prosecution arising out of such inquiry or scrutiny, if any, is pending with the court.

Procedure of Strike Off:

1. Hold Board Meeting to discuss and decide for voluntary strike off u/s 248(2)
2. Pay off all the liabilities before holding EGM
3. Convene EGM for passing special resolution
4. File Special Resolution in MGT-14 within 30 days
5. File STK-2 form alongwith following documents
*Indemnity Bond duly notarized by every director in Form STK 3;
*A statement of accounts containing assets and liabilities of the company made up for a day, not more than 30 days before the date of application and certified by a Chartered Accountant;
*An affidavit in Form STK 4 by every director of the company;
*CTC of Special Resolution duly signed by each Director
*In the case of a Company regulated by any other authority, approval of such authority shall also be required;
*A statement with respect to any pending litigations, involving the Company;
1. After receiving an application, ROC shall publish a public notice STK-6 to seek objection from public on proposed strike off;
2. The notice shall be placed on the website of Ministry of Corporate Affairs, published in the Official Gazette and published in a leading English newspaper and at least in one vernacular newspaper where the registered office of the company is situated.
3. ROC shall simultaneously intimate the concerned regulatory authorities regulating the company, i.e. the CBDT and CBEC having jurisdiction over the company, about the proposed action of removal or striking off the names of such companies and seek objections if any.
4. After complying all the process, ROC shall strike off the name and dissolve the company by sending notice in the official gazette in form STK-7